I once had a post comparing the the Euro (one currency, multiple countries with different economies) to the dollar (one currency, multiple states with different economies) and concluded that for such a situation to be stable, you need to see transfers to the lousy performing states from the well performing states. And we do see such transfers. (Interestingly, for decades, on average, it seems the lousiest performing states are among the reddest of the red states, inhabited by people who rail against welfare.)

I was thinking of that yesterday when I read this interesting Yves Smith’s post on the future of the Euro. And I’ve been trying to think what to add to it – some pithy comment or whatnot instead of just a link – but after 24 hours I’m giving up. Click the link.